How to Build New Revenue Channels in 2021

It is common knowledge that creating multiple sources of income is a proven way to build wealth. If you are looking to earn more and increase your financial security, you should start giving time and attention to the cause of creating new revenue channels.

If you are a retailer, you can apply the principle of building new revenue channels to your enterprise. Apart from generating more income in the process, the financial viability of your business will be sustained.

Being a retailer comes with both risks and rewards. The ups and downs of earnings are real for even the biggest brands, and things can become challenging for smaller outfits. The more revenue channels you have, the more prepared you will be for times of unforeseen difficulties.

Also, creating new revenue streams affords you the option to put more monetary investments into your business and contribute to its growth.

Given the impact of COVID-19 on businesses in 2020, we thought it wise to bring you information about creating new revenue channels for your business. A new year comes with new opportunities and challenges, hence equipping yourself with the knowledge that can help you win is a smart thing to do.

Below are some strategies that retailers can use to create new revenue streams in 2021:

Look to Artificial Intelligence

Artificial Intelligence is constantly developing technology in today’s world. Once upon a time, AI belonged in the world of sci-fi movies; today it is an important business tool for many companies. AI can become a useful tool for your business, too.

AI allows developers to utilize data science, deep learning, and machine learning to help businesses better understand consumers. It doesn’t stop at that; with AI, a company can make automated and optimized decisions based on what they have learned about consumers.

As a retailer, AI will present you with several opportunities to increase your revenue. Firstly, you’ll be able to set up a less irritating and more effective ad campaign. You will be afforded the option to tailor your ads based on the habits and experiences of customers. Secondly, the more your algorithms suggest genuinely personalized ads, the more your target audience will appreciate the shopping experience.

Choose the Right Affiliates

Affiliate marketing lets you take advantage of the benefits of influence to attract people to your products. If are intent on influencing consumers’ buying habits, you should consider recruiting an affiliate that can easily engage with your target audience. This affiliate has to have the trust of your target audience, too. This is an effective way of getting your products to sell fast, and this translates to more revenue.

When recruiting an affiliate to help you promote your products, do well to ensure that:

They have an excellent relationship with their audience
Their audience might show interest in your products
They have a great following, views, engagement, site ranking, and authority

It is important to check for all of the above to avoid wasting time, resources, and effort.

For example, if you are a food company, partnering with a coupon site that gives out discounts on travel tickets wouldn’t be wise. Therefore, recruit your affiliates wisely so you can get maximum conversion.

Create a Robust Affiliate Network

Instead of moving from one affiliate network to another, create yours. Recruiting your first few affiliates can be challenging, but it will be rewarding in the end. Also, expanding your affiliate network is relatively easier than building a network from scratch.

The best way to attract affiliate marketers is to follow a clear and direct approach. Provide your potential affiliates with all of the important details, including their roles and what they stand to gain in commissions.

You should consider encouraging your existing affiliates to recruit sub-affiliates. You can propose to offer them a token from the sales of their sub-affiliates. That can be very encouraging.

Remember to frequently appreciate and reward your most loyal and hardworking affiliates. Doing this will incentivize them to come up with more creative ways to sell your products. More sales will bring in more revenue, and that’s what you are looking to achieve.

Take Advantage Virtual Reality and Augmented Reality

A retailer can create new revenue streams by taking advantage of virtual reality and augmented reality. Both trends are beginning to have increasing impacts in the retail world. As AI & VR technology becomes more accessible to retailers, consumers are enjoying better-optimized shopping experiences. Consumers are amazed by the idea of being able to virtually inspect products before purchasing them.

Taking advantage of virtual reality and augmented reality will work wonders for your business and drive up your revenue numbers. Imagine being able to show your customers and target audience the true quality of your products.

More businesses are beginning to introduce Augmented Reality into their physical stores. You can use your camera to automatically scan a bag of flour, get a picture of its nutritional information, expiry date, and even recipes suggestions. To put it simply, Virtual Reality and Augmented Reality provide a better overall shopping experience for consumers.

The application of Virtual Reality and Augmented Reality has two advantages. The first one is to bring more customers to your site and engage them in a shopping experience that encourages sales. The second advantage is that shoppers are less likely to send back products after buying them. This is because VR and AR give consumers the opportunity to properly inspect products before making the final purchase. So, more sales and fewer cases of returns translate to more revenue for you, the retailer.

Conclusion

You have what it takes to push your business to the next level. As a retailer, one of the most useful traits to have is the desire to discover new retail strategies that work. Without a doubt, investing time and effort into creating new revenue channels is a strategy that works!

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